New sports bar to take over for YQR Distillery

Regina City Council approved the amendment of a new lease agreement between the Regina Exhibition Association Limited (REAL) and YQR Distillery on Tuesday.

During a special meeting, REAL was granted approval to amend and assign the lease to a numbered company owned by the Brandt Group.

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Brandt CEO Shaun Semple explained to council that the goal is to create a “very unique” on-site sports bar, restaurant and entertainment venue at the REAL District.

“It will be a destination before and after Pats and Riders games, concerts and every other type of event that REAL produces,” he said.

“It will provide a performance home for local artists to gain exposure and to be a new stop for doing acts, helping revive Regina’s music culture.”

Board chair Jaime Boldt said REAL is very excited to take the next steps in what she called a “catalyst project”.

“The REAL board was given a task, and that was under a new mandate to be commercially viable – and this does that for us,” Boldt said.

“It also shows that we are going to be around – that REAL is going to exist and we need other things happening at the district. We are envisioning this as an anchor tenant so that other investors will come and say, ‘Hey, I want to be part of this.’”

Council voted 7-3 in favour of the motion, with councillors Sarah Turnbull (Ward 5), Shobna Radons (Ward 7) and David Froh (Ward 3) voting against it. Ward 8 Coun. Shanon Zachidniak was absent.

The dissenting councillors said they were wary of approving a deal that wasn’t written on paper – especially considering the 90-year length of the lease.

Turnbull said the city could have sought better deals by testing the market.

“I think Regina has a lot to give, and we don’t necessarily have to settle,” Turnbull said during the meeting.

Semple said the new company’s name is Dominion Distilleries, which is the parent company of Queen City Distillery Ltd.

He said the project included a $12 million investment in the building, and claimed it would create more than 100 new jobs.

The goal is to have the new operation “partially open” by September. (Daniel Reech/980 CJME)

Boldt said REAL would be responsible for about $1 million for upgrades that should have been done with the previous tenant, who REAL hadn’t collected rent from in six months.

REAL said YQR owed more than $500,000 in rent, which it would not be on the hook for.

The plan met some opposition from Z Group Holdings Ltd., which holds a 37 per cent ownership stake in YQR Distillery.

Vice President Ben Liu said the group had not been informed of the proposed assignment by either YQR or the City of Regina.

Liu said the assignment would usually require approval from the Canada Business Corporations Act and the unanimous shareholder agreement overseeing YQR.

“We are not sure why this is being rushed through the city approval process in this matter,” Liu said.

Liu said Z Group Holdings is not against a solution being reached between council and REAL, but said the process should be transparent and fair.

REAL righting the ship?

Mayor Chad Bachynski called the decision a positive step for both the exhibition association and the city.

REAL has been trying to become solvent and overcome some of its reputational issues stemming from taxpayer concerns around large budget requests and the failed “Experience Regina” rebrand.

Bachynski said council had to balance the risks associated with approving or denying the motion.

“We’re looking for the city to be seen in a positive light. That’s a mission of mine in this role, and I think that this, for me, is another step in that direction and it’s another step for REAL, who we know has had challenges in the past,” Bachynski said after the meeting.

Boldt said the new sports bar should be partially open by September.

REAL firings

REAL parted ways with seven senior managers on Monday. Boldt said the decision goes back to REAL’s new mandate and council’s request for REAL to review its business model.

“That in turn, led us to a point where we needed to take a really hard look at the structure,” Boldt said.

“There’s a reorg. and restructuring in terms of reporting that was rolled out as well, and that’s to create efficiencies (and) to be more financially responsible in the running and the operations of REAL.”